This study evaluates the issues in plastic packaging in Sri Lanka through its usage and environmental and health challenges. The target of this paper is integrating the knowledge about single-use plastics, evaluating the current waste management practices, and finding sustainable packaging. This review proposes actionable strategies for transitioning towards a sustainable circular economy and packaging solutions. Published academic literatures, official government reports, and local case studies on plastic in Sri Lanka were reviewed to pinpoint critical deficiencies in waste management infrastructure and policy enforcement and innovations in bio-plastics and biodegradable materials.